Business Report

Cabinet approves landmark Mineral Resources Development Bill for public comment

LEGISLATION

Siphelele Dludla|Published

Minister Khumbudzo Ntshavheni briefs media on outcomes of the Cabinet Meeting held on Wednesday

Image: GCIS

Cabinet has taken a decisive step towards reforming the mining sector by approving the publication of the Mineral Resources Development Bill of 2025 for public comments.

Minister in the Presidency, Khumbudzo Ntshavheni, said on Thursday that this pivotal legislation aimed to bolster investor confidence and stimulate economic growth by reducing bureaucratic hurdles and providing regulatory certainty, which are essential to attract and retain investment in the mining industry.

As part of the amendments to the existing Mineral and Petroleum Resources Development Act of 2002, Ntshavheni said the new Bill addresses a range of regulatory gaps that have long hindered the sector's potential.

Ntshvavheni said the Bill sought to ensure that the benefits of mining are distributed equitably across communities while also promoting local processing and manufacturing, with a focus on streamlining licensing processes. 

"The Bill seeks aims to address key regulatory gaps, streamline licensing processes, ensure equitable distribution of mining benefits, promote local processing and manufacturing industries by ensuring that more raw minerals are transformed into higher-value products within the country," she told journalists during a post-Cabinet media briefing in Pretoria. 

One of the key features of the Mineral Resources Development Bill is the introduction of a dedicated licensing regime for artisanal and small-scale mining operations.

This initiative is expected to foster economic growth by empowering small miners, who often operate on the fringes of legality due to a lack of formal recognition and support.

By bringing these activities into the regulatory fold, the government aims not only to bolster economic activity but also to improve safety and operational standards in smaller mining enterprises.

In addition to creating a more conducive environment for legitimate mining operations, the Bill also takes a strong stance against unlawful activities in the sector. By establishing clear prohibitions and enforcement mechanisms regarding illegal mining, the amendments aim to effectively combat this persistent issue, which has plagued the industry for years and resulted in significant losses to the economy.

The Cabinet’s approval of the Bill represents a pivotal moment in South Africa's approach to mining regulation, signalling a commitment to not only enhancing the sector’s growth potential but also ensuring that the communities most affected by mining activities see tangible benefits.

Stakeholders are encouraged to engage in the public comment phase, presenting opportunities for valuable insights that could further refine and strengthen the legislative framework.

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